Buy now, pay later in Germany: new rules from 20 November 2026, costs and Schufa

From 20 November 2026, "pay later" in Germany is almost always a loan in legal terms. The new consumer credit law then also covers interest-free payment deferrals, small amounts under 200 euros and instalment purchases (Ratenkauf) through payment services such as Klarna or PayPal. The provider has to check your creditworthiness, give you information in advance and grant you a right of withdrawal. The classic purchase on invoice (Rechnungskauf), where the shop itself gives you time to pay for free, stays exempt.

Key points

• From 20 Nov 2026, the credit rules of the German Civil Code (BGB) apply to every payment deferral granted by a business, even when it is free (new Section 506(1) BGB).
• Exception: the shop itself gives you up to 50 days to pay, free of charge and without a lender in between. Large online retailers may only allow up to 14 days for this exception.
• According to BaFin, 20 percent of 18 to 60-year-olds use "buy now, pay later" when shopping online, and 14 percent of users have lost track of what they owe at least once.
• A €600 instalment purchase over 12 months at 15 percent APR costs around €47 in interest.
• Under the new Schufa score, one new instalment loan lowers the points for the criterion "number of instalment loans" from 66 to 48.

What changes for "pay later" from 20 November 2026?

From 20 November 2026, payment deferrals and instalment purchases come with the same duties as an instalment loan: a credit check, pre-contract information and a right of withdrawal. Until then this only applied to deferrals that cost money.

The change is in Section 506 BGB, which the act implementing the EU Consumer Credit Directive rewrites. Under the new wording, the credit rules apply to all contracts in which a business grants a consumer a payment deferral. The word "for a fee" (entgeltlich) is gone. Interest-free models such as "pay in 30 days" or "pay in 3" therefore fall under credit law when a payment service grants the deferral. The Federal Ministry of Justice explicitly names small loans up to 200 euros, interest-free and fee-free credit and "buy now, pay later" models.

What this means for you:

• Credit check: under Section 505a BGB, the provider has to check "thoroughly" (eingehend) whether you can pay. It must not use data from social networks for this (new Section 505b(3) BGB).
• Notice of rejection: if the provider says no, it has to tell you without delay and, where appropriate, point you to a debt advice service.
• Withdrawal: you can withdraw from the credit part within 14 days. How the period runs is explained in the guide Withdrawing from a loan.
• Cut-off date: the rules apply to contracts concluded from 20 November 2026. Instalment purchases you make before that stay under the old law.

As of 8 November 2026, Klarna, PayPal and Ratepay had not published a uniform description of how they will run the check at checkout. Expect "pay later" to be declined at checkout more often than before. All other changes in the act are summed up in New credit rules from 20 November 2026.

Which payment methods fall under credit law?

What matters is who gives you time and whether it costs anything. If a payment service grants the deferral, credit law applies from the cut-off date. If the shop itself gives you time for free, the purchase usually stays outside.

Payment method	From 20 Nov 2026	Credit check
Shop invoice, free, up to 50 days	not a loan	possible
Large online retailer invoice, up to 14 days	not a loan	possible
"Pay later" via Klarna, PayPal etc.	loan	required
Instalment purchase, even 0 %	loan	required
Credit under €200	loan	required

The exception for paying on invoice is in Section 506(1) sentence 2 no. 5 BGB: the shop grants the payment period "itself" without a third party financing it, free of charge, for no more than 50 days after delivery, and late payment can only lead to limited costs. For large online retailers that are not small or medium-sized enterprises, the exception only applies up to 14 days and only if no third party takes over the claim. Debit cards with an interest-free deferral of up to 40 days also stay exempt (no. 4).

How common this payment method is shows a BaFin survey of 4,936 people (published in February 2026): 20 percent of 18 to 60-year-olds use "buy now, pay later" when shopping online. Among under-30s, almost 30 percent often buy on invoice and 17 percent often pay in instalments. People mostly buy clothing (55 percent) and electronics (43 percent) this way.

How much does an instalment purchase cost?

Paying an invoice on time usually costs nothing. An instalment purchase with interest costs noticeably more, depending on the provider, according to Verbraucherzentrale NRW (as of 30 July 2026) up to 15 percent. Terms there run up to 48 months.

Worked example: on Black Friday you buy a games console or a TV for 600 euros and pay in 12 equal monthly instalments. For comparison, the average APR on new consumer loans was 8.91 percent in September 2026 according to the Bundesbank.

Option	Instalment	Extra cost
Invoice, paid within 30 days	€600 once	€0
0 % financing, 12 instalments	€50.00	€0
Instalment loan at 8.91 %	€52.35	€28.20
Instalment purchase at 15 %	€53.89	€46.66

Assumptions: APR, 12 equal instalments, no other fees. For 1,200 euros over 24 months at 15 percent, the interest would already be around 184 euros. It gets expensive above all when you miss a deadline or convert an invoice into instalments afterwards. According to BaFin, 57 percent of users who ran short of money did exactly that, and about as many pushed back the due date. Always compare offers by the APR (Effektivzins), because only it includes all costs.

How does "pay later" affect your Schufa score?

An invoice paid on time usually does not show up as a loan. An instalment purchase that the provider reports to Schufa as an instalment loan does affect your score, and so does an unpaid claim after several reminders.

The new Schufa score counts the number of instalment loans from the past twelve months. With no instalment loan you get 66 points for this criterion, with one 48, with two 32 and from three onwards none. Schufa describes instalment loans as consumer credit repaid in monthly instalments, for example for furniture, a car or electronics. Whether a payment service reports an instalment purchase is stated in its privacy notice. Several instalment purchases shortly before Christmas can therefore make a later loan application more expensive.

For unpaid invoices, Section 37a(3) of the Federal Data Protection Act (BDSG) applies from 20 November 2026. Without a court ruling or an acknowledgement, an unpaid claim may only be included in the score if you received at least two written reminders after the due date, the first reminder was at least four weeks ago, you were told in advance about a possible report and you have not disputed the claim. You can find out what Schufa has stored about you with the free data copy. How to request it is explained in Schufa score: request information.

What happens if you do not pay on time?

After a missed deadline come reminders with fees, then often a debt collection agency (Inkasso) with further costs. After two reminders and a warning, the claim can end up at Schufa.

Verbraucherzentrale NRW describes the usual process like this: one to three reminders, after which a debt collection agency can be brought in, and you should expect high reminder and collection costs. The BaFin survey shows how often this happens: 26 percent of users have already paid late-payment fees, and 21 percent have fallen behind on an instalment. Among 30 to 45-year-olds it was 32 percent.

If you realise that you cannot pay an invoice on time, contact the provider before the due date. A new deadline or an instalment arrangement is cheaper than reminders and collection fees. If you dispute a claim, for example because you sent the goods back, tell the provider in a way you can prove. A disputed claim must not be included in the score via the reminder route. If you need money to clear several open items, look at an instalment loan with a fixed term via the loan comparison instead of stacking more deferrals.

How do you buy safely on invoice or in instalments on Black Friday?

Only use "pay later" for amounts you will definitely have in your account on the due date, and note down every deadline. Verbraucherzentrale NRW advises using the function only in exceptional cases.

In 2026, Black Friday falls on 27 November, one week after the cut-off date. These points help:

1. Check your fixed costs: before you buy, work out what instalment is left after rent and running costs. The maximum instalment calculator helps.
2. Read the costs: look at the APR, fees for extending the deadline and costs for late payment.
3. Note the deadlines: put every due date in your calendar or app and add up the open amounts.
4. Set the instalment aside: reserve the amount in your account at the start of the month.
5. Ask about early repayment: check whether you can pay off an instalment purchase early.
6. Report returns: if you send goods back, tell the payment service so the claim is adjusted.

According to BaFin, one in four users (24 percent) has already spent more than planned with "buy now, pay later", and 38 percent of under-30s. A simple limit helps: no more than one open instalment purchase at a time.